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10
2014
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Obama, Chief Banker Stooge
This program, assuming he manages to do it, will in fact do more harm in terms of college costs. The simple fact of the matter is that the cheaper and easier you make "money" (really debt) the more something that money (debt) buys will cost. It is basic economics, otherwise known as supply and demand, and is one of the first things you learn when you start studying economics. If you present more demand you will raise price, given a level of supply. The converse is also true: If you cut off the cheap federally-guaranteed credit price will fall, in this case precipitously so, because an empty classroom generates zero revenue. People talk about "inflation" as being the reason for high college costs. That's a lie. One needs to reference price against wages; when you do so what you find is that you used to be able to work a minimum wage job part-time during the academic year plus a similar minimum wage job during the summer months and by doing so make enough to pay in full your tuition, room, board, books and fees. But the only borrowing you could do then was on an un-subsidized and un-guaranteed basis -- that is, if someone loaned you money and you didn't pay, they lost their investment. As such they tended to be very careful about how much was loaned and to whom, lending funds only to those with a high prospect of success and keeping close tabs on progress. Today none of that happens. You can borrow $100,000 to get a degree in sociology or classical literature, both of which are nice things to study but have poor job prospects in terms of ever making back the $100,000 plus interest that has been borrowed. Never mind that the degree itself shouldn't cost more than $20,000 in inflation-adjusted, that is, current dollars. So the degree itself is five times as expensive as it should be -- just as it is in medicine. Why? Because we create out of whole cloth a system of extortion and peonage that feeds this cycle, including in the case of education "accreditation" bodies that become required for you to enter certain fields (such as law, teaching and similar.) Rather than simply administer an exam and allow anyone who passes, irrespective of how they gained the knowledge, to practice that field we force people into a monopoly-controlled field. Then we pass laws rendering such debt unable to be discharged, and when that gets out of control the final bastion -- trying to find ways to transfer that load to everyone, thereby forcing you to pay for your next door neighbor's education in college, will begin. Just as it did with elementary, middle and high school. And it has had, and will continue to have, the same disastrous results. 20 years ago I found myself interviewing college graduates who had formal degrees but were terminally stupid in that they had not learned how to apply deductive reasoning and examination of facts. In other words they had failed to acquire the fundamental benefit of a college education -- learning how to think -- in exchange for their funds. I have seen this repeatedly over the years even in people with advanced degrees, including PhDs! It's inexcusable but entirely expected when you have money chasing after service without regard to merit. Obama is simply a banker stooge in this regard -- his goal is one thing and one thing only -- to impoverish you and deliver you into peonage. I'm willing to bet you'll go along with it. |
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